UBM has sold PRN for a headline price of $841m (11.9x N1Se FY15 EBITDA estimate). Immediate net cash proceeds will be c£498m of which the company proposes returning £245m via a special dividend to investors. The remainder will be retained to drive its Events First strategy. This is likely to prove to an attractive price for investors in the long term. We expect a positive response from the market to UBM finally (and effectively) becoming the pure play that investors desire. There is an investor call at 8.30am which should provide more information. Our forecasts and rating go under review at this stage.
